A list of the rules that could be subject to change are here. Interestingly, part of the proposed agenda is squarely and explicitly international in nature, and targets international standard-setting in the Basel Committee, including:
* Revisiting rules on the additional capital charges on major U.S. banks and the mandatory minimum debt ratio
* Establishing a global risk-based capital floor
* Considering the implications for the United States of implementing Basel III’s approach for credit risk
* Leading efforts to narrow the scope of new standard-setting initiatives and advocate for standards that align with domestic regulatory objectives.
A couple of quick observations: by signaling an intent for a risk-based capital floor, the Treasury department is not only advocating a series of potentially reforms that will conflict with European counterparts—but it is also, at least implicitly, acknowledging the Basel Committee as the appropriate forum for international regulatory coordination.
At the same time, the Treasury Department is doubling down on an “America First” posture to international economic diplomacy. Frankly, this is not so much a change from past practice; at best, it implies a reordering of perceived priorities in international policymaking.
Finally, it will be interesting to see what a “narrower” scope of policymaking in fact means. I doubt even the US can unilaterally wind down entire streams international regulatory coordination, especially given the highly interconnected and cross-border nature of global capital markets.
The Treasury Department’s full report on its program for financial reform can be found here.